Eighty-seven percent of Generation Z stock investors (aged 18 to 26) took action on their investments in 2023 due to inflation or higher interest rates, a survey by Bankrate found.

Sixty-eight percent of Generation Y respondents (aged 27 to 42), also took such action. Each of these generations did so at a much higher rate than preceding generations; 38 percent of Gen X investors (ages 43 to 58) took action due to inflation or higher rates, and 35 percent of baby boomer investors (ages 59 to 77) bought, sold or withheld investment.

Fifty-two percent of American investors said that they had bought, sold or withheld investment due to inflation or higher returns on safe investments (such as savings accounts), or both.

“If younger investors trade in and out of the market, that’s almost guaranteed to underperform,” James Royal, a Bankrate analyst who conducted the research, told CNBC. Jumping in and out of the market generally leads investors to miss the market’s biggest days and can also lead to a bigger tax bill for investors, he added.

Allowing emotions rather than logic to guide investment decisions generally leads investors to make “a bad financial decision,” certified financial planner Ted Jenkin of Atlanta-based oXYGen Financial told CNBC.